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Which of the following is used by the federal government to provide Social Security and Medicare benefits?

federal payroll tax
property tax
sales tax
FICA

User SpaceFozzy
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2 Answers

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FICA (Federal Insurance Contributions Act)
User WebWanderer
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The correct answer is: "FICA".

FICA stands for Federal Insurance Contributions Act. It establishes a mechanism through which both employers and employees make their contributions and fund the Social Security system and the provision of Medicare benefits.

Such funding is used at a federal level to provide income support to individuals who are retired, who suffer disabilities or, for example, to the families (children) of deceased workers.


User SimpleNEasy
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